Disconnect between Chinese iron ore imports and steel production widens

Chinese iron ore port inventories are near record highs at 160mt, signaling a deceleration in import demand that is expected to reduce seaborne volumes to Chinese ports in the near term. Simultaneously, the structural shift in trade routes from Australia to Guinea (Simandou ramp-up) is generating significant tonne-mile uplift for the capesize market, supporting freight rates even as overall volumes may ease.